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Using Cultural Mindsets To Reduce Cross‐National Auditor Judgment Differences, Aaron Saiewitz, Elaine Ying Wang
Using Cultural Mindsets To Reduce Cross‐National Auditor Judgment Differences, Aaron Saiewitz, Elaine Ying Wang
Accounting Faculty Publications
In a globalized audit environment, regulators and researchers have expressed concerns about inconsistent audit quality across nations, with a particular emphasis on Chinese audit quality. Prior research suggests Chinese audit quality may be lower than U.S. audit quality due to a weaker institutional environment (e.g., lower litigation and inspection risk) or cultural value differences (e.g., greater deference to authority). In this study, we propose that lower Chinese audit quality could also be due to Chinese auditors' different cognitive processing styles (i.e., cultural mindsets). We find U.S. auditors are more likely to engage in an analytic mindset approach, focusing on a …